The economic strategy proposed by US President-elect Donald Trump is devastating for the dollar. Many experts predict that the greenback is in for a tough ride.

The imposition of high import tariffs, as previously announced by Donald Trump, will lead to catastrophic consequences for the US dollar. Analysts at Saxo Bank believe the greenback will lose its overwhelming dominance in global trade.

In their report titled “Shocking Predictions”, the bank’s experts outline such a scenario. They suggest that under current economic conditions, countries will begin seeking alternatives to the US dollar in international settlements, including digital currencies, "which might cause the cryptocurrency market to quadruple—exceeding $10 trillion."

According to Saxo Bank, in 2025, Donald Trump will impose massive tariffs on all imports and attempt to reduce the budget deficit by creating a new Department of Government Efficiency (DOGE).

The disastrous impact on the US dollar will derail global trade, the experts emphasize. "The introduction of tariffs will cut off the necessary supply of dollars to sustain the global system based on the USD," they add.

This will push global financial players to look for alternatives to the US dollar. China and BRICS countries are already taking steps in this direction. Europe is also striving to conduct trade settlements in euros. Against this backdrop, cryptocurrencies are gaining momentum. "As a result, the cryptocurrency market will grow fourfold—exceeding $10 trillion. At the same time, the greenback will lose 20% of its value against major currencies and 30% against gold. This will mark the beginning of a dramatic new chapter in the history of global financial markets," Saxo Bank asserts.

Experts say that the introduction of import tariffs will also accelerate inflation in the US. Meanwhile, wage growth will pick up as production facilities will be relocated to the country.

Interestingly, Saxo Bank publishes its Shocking Predictions annually for the coming year. These forecasts often cover unlikely and underestimated events that could have a surprisingly strong impact on the global situation.